Explain why the government intervenes to provide public goods
Block Type
Knowledge Checkpoint
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Knowledge checkpoint: Explain why the government intervenes to provide public goods
The government intervenes to provide public goods to ensure they are free to access for all because private firms will not supply them as they are non-excludable, non-rivalrous, face the ‘free rider’ problem, and have no profit motive.
The government ensures essential services are accessible by all to maximise welfare.
The government provides services such as police and street lights to reduce crime and accidents.